viewers what the yields on these treasuries mean. the yield is effectively the extra interest investors demand to hold the securities, these bonds, so effectively to lend the u.s. money you demand interest, right? of course people are demanding a little more money in light of the fact that they're concerned about the u.s. perhaps defaulting on these debts. we've also had the head of the world's biggest fund, mohammed commenting about this, saying even if the u.s. does solve the situation it could face a downgrade. >> even if it does raise the debt ceiling it could face a downgrade, that means it costs americans more to borrow money, the american government more, and trickle down to mortgages, car loans, student loans, and things like that. great explanation. thanks for your great coverage. nina in london. back with "wake-up call" at 5:00 a.m. eastern tomorrow. "american morning" start right now. good morning, ali. i'm christine romans. no deal. efforts to reach an agreement on the debt crisis failed over the

weekend. markets around the world are falling. this will have a direct effect on your 401(k). >> i'm ali velshi. the norway terror suspect who admits killing 93 on friday is expected to appear in court in the next hour. his lawyers says he'll explain himself. little comfort to a grieving nation trying to make sense of a massacre, on this "american morning." good morning. it is monday, july 25th. this is "american morning." a lot going on. let's get you right to it. >> glad you're back. it has been a very, very busy news time. >> it sure has. >> while you've been gone. and they solved the debt crisis while i was away -- wrong. >> a new and powerful force is now entering the debt ceiling debate and as christine said it's the financial markets. >> the most important at this point. >> that's what it's about. the markets are down overseas in hong kong and japan, they closed down as efforts to reach an agreement in washington over the

weekend failed and this morning, with just eight days left until washington may no longer have all of its bills paid, time is running out for congress to strike a deal. dan lothian live at the white house. dan, where are the two sides on this issue this morning? >> well, you know, they still can't find any compromise as you pointed out. they worked over the weekend, congressional leaders meeting with the president here at the white house. the hope had been that they could at least come together and have some framework of a plan so that it would not impact the global markets and certainly would not impact wall street. of course that did not happen. we know that senate majority leader harry reid is looking at some kind of a plan that would raise the debt ceiling through the end of 2012 and have cuts of $2.7 trillion. mr. boehner, speaker boehner, wants any kind of deal to stick to somewhat of the framework of cut, cap and balance. that is something that was rejected by the senate. nonetheless, he remains

optimistic that a deal will get done to raise the debt ceiling in time. >> i was born with a glass half full. i'm the optimist. and it's about trying to find common ground. i understand the president feels that, you know, we need a bigger government and more spending here in washington. i believe allowing the american people to keep more of that money is the best way to create jobs and grow our economy. but having said the fact that we're on -- it's almost like we come from two different planets my job on behalf of the country is to find as much common ground as we can to help move the country ahead. >> reporter: ali, as you know, this is also campaign season. the president has been doing a number of fund-raisers. he had two fund-raisers planned for the washington, d.c., area tonight. but a campaign official confirmed last night that those two events will be canceled so that the president can focus on getting this whole debt ceiling issue resolved. >> dan, this has been a slow

motion crisis. >> it has. >> look back in january, the treasury secretary said we have to get something done, may 16th the deadline. may 16th comes and goes. treasury has to pull the crazy strings to make sure we're not in default. and they said we've got until august 2nd. i mean they've got to pass something big and get it implemented quickly if we're not going to blow past that anyway. >> they really do. you heard secretary geithner yesterday saying that essentially we're running out of runway now and this is something that everyone has been dealing with for many, many months. what speaker boehner, according to one republican source, told gop lawmakers yesterday, is that they have to vote on some kind of a plan by wednesday and they have to post it on-line by today. so, you know, these are pretty tight deadlines that they're up against right now and last check, you know, they're still not close on a deal yet. nonetheless they have to get something done as he pointed out by wednesday to meet that august 2nd deadline. >> they don't have to be tight deadlines.

>> never has to be tight deadlines. >> this is a crisis made in washington. >> as mark preston told me about half an hour ago, on the phone, he said guys, it's washington. that's -- >> this is how it always works. >> we'll be with you, talking many times. i have to tell you, grover norquist, the president of the americans for tax reform said to me the other day, it's timothy geithner's fault for saying before may 16th he could shuffle things around until august 2nd and thereby providing the, you know, the idea that maybe this is not as serious as it is. >> they've been saying it's serious for a long time. >> it's serious. >> we have been reporting on americans spending beyond its means for years. >> going to start affecting your 401(k) this week. >> president obama calling for a $1.24 trillion increase to the debt ceiling. on yesterday's "state of the union" treasury secretary tim geithner explained why anything less is unacceptable. >> what we cannot do, this is very important, it would be

irresponsible, is to leave the threat of default hanging over the american economy for a longer period of time. look, you know, back in january more than seven months ago, we started this process of working with the congress to get them to raise the debt limit to avoid a default crisis. it's taken us seven months to get to the place we're at now. we're almost out of runway. >> even if lawmakers settle on a plan it will take days to move it through congress and the president's desk. >> they want something on-line today, voted on on wednesday. >> is that possible? >> we're talking about record time. the president has cannedled the fund-raisers, everybody has to get their nose to the grind stone. >> they don't agree. >> totally right. by the way, we're going to put this to you, what -- who's to blame for this debt gridlock? send us an e-mail, tweet, tell us on facebook. our question of the day, who is to blame for this budget gridlock. there's how you get ahold of us. we want to know what you think. to the gruesome terror

attacks in norway that killed at least 93 people. the suspect, 32-year-old anders behring breivik is expected to appear in an oslo courtroom today. his lawyer says he plans to explain himself, he believes the massacre was, quote, horrible, but necessary. >> he's written a lot about this. it almost has unabomber-esque, you know, stuff connected to it. he's written manifestos as it were. on friday he allegedly set off a bomb near some government buildings, killing seven people, then police say he traveled 20 miles to an island youth camp in utoya, norway, killing 86 more people in a bloody ambush. >> diana mag nay live in norway. we understand everyone in norway observed a minute of silence. can you tell us what's happening now? >> hi, christine. yes, you can see just behind me, before that minute of silence, people have come to the shores of the lake where utoya is to

pay their respects and to place flowers. as you say, anders behring breivik will appear in court in a couple hour's time. it's a controversial hearing in norway because a lot of people are saying this is exactly what he wanted. for him, this was just the beginning. he's got the publicity that he wanted through this horrific massacre and now he has a platform for which to sort of expound his far right extremist views. those are views which really detail a hatred of multiculturism, a hatred of the islamism of europe, and blaming european politicians for allowing muslim immigrants into the continent. that pretty much sums up his philosophy. a facebook page with already around 50,000 people asking that the hearing not be made open to the press. the police have said they want it to be a closed hearing so we will have to wait and see what the court actually decides.

he has confessed to both attacks, but he is going to plead not guilty, probably precisely because he wants this to go to trial, wants an opportunity to make his opinions heard, and you know what, christine, maximum sentence he could get under norwegian law is apparently 21 years, but there is a possibility of extremely serious crimes that after that it goes into some kind of custody system whereby he could be kept in jail for the rest of his life. although that hasn't yet happened under norwegian law. >> i just mentioned at the beginning of this, it has shades of the unabomber in the u.s. in terms of lots and lots of writings, posting information. this guy didn't come out of the blue. he has very strong opinions and they've -- the police are examining a 1500 page man festo. what do they know about this? >> yeah. this document was published, the police say, on the day that

breivik carried out the attacks, so on friday. as you say it's 1500 pages long. it took him nine years to write. it says in large chunks of it are listed from the unabomber's manifesto, although without citation. basically if you remove the word leftist the unabomber put in his manifesto and replace it with cultural markism, which was breivik's biggest bug bear, it there are huge similarities. yes, this is a manifesto deta detailing scary right wing thinking. >> thanks for that. sad story to have to cover. thank you for that from you and our team. >> a minute of silence observed in oslo and the country of norway. four teenagers badly mauled by a brown bear and her bear cub. this is deep in alaska. it happened saturday night at talkeetna. the teens were in the 24th day of a month-long backpacking

survival course, and then they were attacked. they're all in critical condition. two of these kids base facing life threatening injuries from this attack. this morning an autopsy to determine what killed singer amy winehouse could take place today. the 27-year-old's publicist and friend tells britain's "the sun" newspaper, winehouse died alone in her bed. many are speculating her death is connected to her well chronicled substance abuse. mementos from mourners continue to pile up outside her london apartment. a string of suspicious fires in california over the weekend. police are searching for an arsonist they believe set as many as 18 fires in north hollywood. the fires began in cars and spread to nearby buildings. police say no one has been hurt. by the laws of the state of new york, i now pronounce you married. you may seal your vows with a kiss. >> and the wedding bells ringing

nonstop since same-sex couples could legally marry in new york state. you're looking at the first couple to marry in new york city. phyllis and connie. they tied the knot at city clerk's office as a crowd of onlookers cheered. >> it was just so amazing. it's the only way i can describe it. i lost my breath and a few tears. it's indescribable. >> a handful of protesters gathered across the state claiming governor cuomo redefine marriage without giving voters any input into it. coming up next, the hotel maid who claimed she was sexually assaulted by former imf chief dominique strauss-kahn speaking out for the first time. her account of the incident straight ahead. >> why this california man, why he grabbed on to a moving car and -- oh! wouldn't let go. we'll tell you what happens, next on "american morning." [ female announcer ] multigrain pops.

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good morning. welcome back to "american morning." he was acting like a crazy man, the words interest the new york city hotel maid that claims former imf chief dominique strauss-kahn sexually assaulted her. >> for the first time since the incident the accuser is coming forward with her side of the story. this is video of an interview she gave to abc news and discussed the alleged attack with "newsweek" magazine. she said she never wanted to go public, but now she feels she has no choice. susan candiotti joining us this morning with this new development. >> good morning. she lays it all out in her own words and from what we understand it seems to match what she has told police, what we've heard from sources, as well as her own attorney. her name is this, it's nafissatou diallo and we are publicly now revealing her name because she herself has come forward, otherwise normally we would not do this for someone who is a sexual assault victim.

here's what we are saying about her account. she went into the hotel room, she thought no one was in there, and then she says she was confronted by a naked man who came at her. this excerpt from "newsweek" magazine says she that she said to him, oh, my god. i'm so sorry. he says, you don't have to be sorry. he says, you're beautiful. she is saying he attempts to attack her at this time. she says to him, sir, stop this. i don't want to lose my job. he says, you're not going to lose your job. now remember that police have said all along that they have found forensic evidence of a sexual encounter in the room and there seems to be very little dispute about that. we have -- dominique strauss-kahn has not told his story, pleaded not guilty and says he will never plead guilty to anything this woman has said he has done. >> this has sparked this war back and forth between the two attorney camps, hasn't it? >> that's right. exactly.

the other thing as well, too, before we get into that war of words, is that she also told abc news, quote, i want him to know that there is some places where you cannot use your money, you cannot use your power when you do something like this. now, the district attorney is not -- is saying they have no comment about any of this. this is highly unusual. those lawyers are going back and forth. the lawyers for dominique strauss-kahn immediately shot out a statement when they heard about this interview and said in part, quote, the number of rallies, press conferences and media events they have orchestrated is exceeded only by the number of lies and misstatements she has made to law enforcement, friends, medical professionals and reporters. lawyers for the maid shot back and said, oh, really? in their words, they are defense attorneys and clearly believe that these types of false personal attacks are part of their job description. but that excuse isn't sufficient when we are dealing with a brutal sexual attack, a mountain of physical evidence, a victim who spoke out immediately and

numerous corroborating witnesses. so, again, this is remarkable, the fact she has come forward, especially since the prosecutors have not yet made their final decision. >> and so, is this meant -- do we think this is meant to be influencing the prosecutors so carry on with the prosecution? >> sure. >> which is what dominique strauss-kahn's lawyers are saying or are they setting the ground for a civil suit. >> they've claimed they are going to sue him civilly, no doubt about that. they'll filed a lawsuit against "the new york post" for alleging she is a prostitute which she has denied. we'll have to see what happens next, but clearly, prose cuters are moving forward. as a matter of fact, last week alone they interviewed the lawyer of a french woman who has already filed a formal complaint in france alleging dominique strauss-kahn attacked her years ago. and there are moves under way now to bring that woman to the united states so that prosecutors can interview her before they make a final

decision about whether to move forward. >> still a story of her credibility and his reputation and both of them colliding in a high profile -- >> exactly. >> thank you. >> you're welcome. >> in the 8:00 hour, christopher dickey will join us, the paris bureau chief, he interviewed diallo for the "newsweek" cover story and we'll get his impressi impressions. we would like to get your imprexs of this. you do not see this every day. a man hanging out of a car speeding along. a local tv cameraman in stockton, california, preparing for a live report on friday morning, when this car drove by him with a man being dragged from the passenger window about 35 miles an hour. police say the man mistakenly thought a friend's purse was inside the car and he was determined to get it back. i'm assuming the car was being stolen? >> i don't know. >> nobody was hurt. >> a long way to go for a purse. >> that is a long way for a purse. you can call and cancel the credit cards. no charges were filed.

nobody hurt. that's the fascinating part. >> yeah. >> never found out whether he believes that car has been stolen. >> or why he thought a purse was in there. chicago's wettest day ever. all of my friends and sister-in-law were checking their basements. firefighters pulling people from stranded cars after close to seven inches of rain fell in just a matter of hours on saturday. it came down so fast, sewers backed up, highways shut down. some train service was suspended. i was there. it felt like it was just, rob, felt like it was a huge thunderstorm that had just stopped over chicago and kept churning in circles. unbelievable. rob marciano in the extreme weather center with us. a wet day in chicagoland. >> it was kind of a stalled front over that area and the thunderstorms training over the same site one after the other. that front moving to the east an as it does so, we won't see storms that probably produce seven inches like in chicago but produce heavy downpours at times as this humidity that's built up over the past couple weeks with

the heat wave, obviously got wrung out of the atmosphere rapidly across the chicagoland area. speaking of heat, record highs from yesterday. a little bit of a shorter list but still hot. 100 atlantic city, 100 wilmington, north carolina, and philadelphia, seeing 98 degrees. since then a little cool front has slipped through and they'll see another cold front come through over the next couple days. dallas to oklahoma city, the south central plains, continue to sizzle. dallas is well over 20 days now in a row much 100 degree plus temperatures and today up to at least 106 degrees. want to cool out, go out west. last official day of skiing for a ski resort outside of lake tahoe. they had to scrape to get the snow on the one trail but they did it and the last day of skiing was over the weekend. heck, you know, almost september. we'll be reopening those slopes here before too long. nonetheless, one of the longest -- >> can you bet rob was talking about skiing --

>> he can always find us a last day. surprised he's not there doing it. >> i was surprised they were still open. i thought july 4th everyone shut down and congratulated everybody, but apparently borereal kept it going another couple weeks. >> hurts when you wipe out in daisy dukes. new hope for amanda knox's murder appeal. two forensic experts rejecting dna evidence used to convict her. details coming up. 23 minutes after the hour. [ diane lane ] is your anti-wrinkle cream gone...

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minding your business this morning. lots to talk about this week on wall street. u.s. markets poised to open sharply lower this morning, dow

futures are down right now more than 100 points. at one point this morning in premarket, futures trading, nasdaq and s&p 500 futures trading down so far. why? the debt clock is ticking and lawmakers in washington have not reached an agreement to raise the nation's debt ceiling and get our debt under control. we're beginning to see the effects of that uncertainty in world markets. stocks in china and japan closed lower. european stocks are down this morning. and moody's dealing another blow to greece, downgrading its debt yet again. that's also pushing european markets and u.s. stock futures lower. the ratings agency forecast that greece will have to default on some of its debt despite the european union approving another bailout for that country last week. investors have to sort through more corporate earnings reports. texas instruments and netflix report their earnings for the most recent quarter, after the closing bell. big oil companies, exxon mobil and chevron expected to report very big profits for the second quarter. that will come later this week.

investors are waiting for the first official reading on the nation's economic growth for the most recent quarter. right now economists forecast that growth actually slowed down to about 1.6%. the recovery, perhaps, losing some steam. those gdp numbers will be released on friday. and gas prices are trending up again. the latest lundberg survey says recent high oil prices are pushing gas prices up nationwide. the current national average for a gallon of regular $3.69. "american morning" will be right back after this break. (telephone ring. pick up) usa prime credit. my name ...peggy. you got problem? peggy? third time i've called, it's time i speak with a supervisor. supervisor is genius...i transfer. transfer! transfer! transfer! transfer! transfer! hello...my name is... peggy? come on!!! hello? want better customer service? switch to discover. ranked #1 in customer loyalty. it pays to discover.

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31 minutes after the hour. means it's time for top stories. president obama canceling two fund-raising appearances today after talks to resolve the nation's debt ceiling crisis went nowhere over the weekend. failed talks have left both sides pursuing separate plans as

investors on wall street and overseas worried in a moment we'll go live to london and hong kong for the latest in financial markets. a minute of silence throughout norway as massacre suspect anders breivik prepared to appear in court in oslo this morning. it's going to happen in the next 30 minutes or so. his attorneys say breivik will explain himself. his client believes the massacre was, quote, horrible but necessary, end quote. on friday breivik admitted setting off a bomb near some government buildings killing seven people and then police say he traveled 20 miles to an island youth camp and went on a shooting spree killing at least 86 more people. the new york city hotel maid who claims former imf chief dominique strauss-kahn sexually assaulted her is speaking out. 32-year-old nafissatou diallo in an interview with "newsweek" magazine and abc news saying, quote, i want justice, i want him to go to jail, i want him to know you cannot use your money, you cannot use your power, when you do something like this, end

quote. as ali mentioned if you have a 401(k), ira, you might be paying the price for washington's inability to reach a deal on raising the debt ceiling. markets overseas are down. stock futures here in the u.s. also are in negative territory. we are live in hong kong and nina dos santos is live in london. even in washington, people negotiating this thing were saying, we have to keep a close eye on what happens in asia. the markets are now a participant in this debt drama, aren't they? >> yeah. they very much are. some of the -- the highest number of the u.s. treasury holdest in the world, they've been watching this, wanted to wake up monday morning and see there was a deal. no deal. what was the reaction on the markets? it was quite muted and we had domestic news around the region that probably had more of an impact on some stock markets like in shanghai. in japan, down 0 .8% for the

close. there are few stocks indicative of some of the concerns people here have about the credibility of the u.s. economy as a whole right now and people punching that word around downgrade, what happens if there is a downgrade, no matter what happens of u.s. debt. what are the implications. we had toyota as one example down 1.5%, and honda, which sells some 44% of its cars to the north american market, also under pressure. it's really a wait and see mode over here in asia right now. but let's cross over to nina in london for a view of how european markets are responding to this debt crisis. >> whether it's a default first or downgrade first, that's what investors are focused on here on this side of the atlantic. broadly speaking stock markets started dmats negative territory. some have regained ground. ftse 100 up a tad, but the bond market suffering and the euro up against the u.s. dollar. currency wise all of this is

because of the united states is enormously important trading partner for this european block and also a hugely important reserve currency. that's why everybody is so worried. we have one bright spot in the market, gold, the ultimate safe haven, has been rising to yet another record, $1,624 an ounce and rising. christine and ali, back to you. >> that bright spot is a reminder of how dire people are about other things that they're looking for that safety in gold. ma knee shah and nina, thank you so much. here we go, it's unpredictable how markets will react. the people i've talked to for years in the market say they can't say what's going to happen. they know that you can't mess around with america's credit. >> unpredictable as to how bond yields will go. some people say interest rates will shoot up if there's a default. others say it might not. a downgrade, interest rates may shoot up, may not. stock market will only respond negatively. >> right. >> and the dollar could get hit. people know that there could be

wild, unpredictable and bad reactions, what that mix is is unclear. >> cnnmoney.com doing a lot of stuff today and this week on what you should do specifically with your money to prepare for the lack of a deal if there isn't one by the end of this week. more on the massacre in norway, an announcement moments ago about today's court hearing for the suspect. >> michael holmes joins us live from oslo this morning. good morning, michael. >> good morning, christine, ali. yeah, in the last few minutes we had news handed down to us here at the courthouse. we are expecting anders breivik to appear in an hour or so. there's been a debate about whether the media would be allowed in there, norway being an open society, it was expected they would be. the police have asked the court to close the court to the public and the media because they fear that breivik might send a message, he has said to his own lawyer he wanted to speak today

and, quote, explain himself end quote. we've heard the court is, indeed, going to be closed to the media and to the public, so we won't know what goes on in there until after it's over. it's essentially a bail hearing and he was going to be given the opportunity to say whether he was, in fact, guilty of these crimes or not. at the moment we've been told that there will be no coverage. we were expecting a live signal out of there, not going to happen at the moment, guys. >> michael, in this grief that norwegians are feeling, they're finding a new hero this morningp. tell us about that. >> yeah. a guy called casper, he was a fellow we went with yesterday out on to the waters near lake -- near the island of utoya where this massacre took place. he's one of several locals who were at home, vacation area up there, vacation time in norway, and was in his home and got a call from his friend who said the shooting was going on on the island and he jumped into a boat with several other locals in

their boats and headed straight to the island. while the shooting was still going on. he was extraordinary. got a bunch of kids off the island who were terrified and under direct threat. here's part of what he had to tell me. >> it's not a huge boat. how many people did you put in here? >> the first round i believe it was 14. >> 14. >> yes. >> then i had to address the oldest one of the four left and said, you have to stay ashore. i promise i will come back and get you. and they respected that. i said, sit down and wait. went to the mainland and went back again and there were -- agreed upon sitting there and i just waved to them like this and they waved back and we made contact and got them in the boat. >> yeah. extraordinary tales that he was telling me, ali and christine. one of them was that you heard him say, waving to people, waved

to a group of three kids sheltering behind some rocks and didn't wave back. he thought they were terrified. came back on a second trip, did three in all, tried to make contact with the kids again, and it was then he realized they were dead, all three had been shot to death and, you know, tragic stuff indeed, unfolding here in norway. >> michael, it is absolutely tragic, it's tragic in a country that wasn't expecting this. a country that is so known for being peaceful. michael, thanks for your coverage. michael holes from oslo. new this morning, could the murder conviction of american student amanda knox be thrown out? two independent forensic experts appointed by an italian judge reject key dna evidence used to convict knox. knox's case is currently under appeal. she was sentenced to 26 years for the murder of her roommate. prosecutors say they found knox's dna on a knife they believed is the murder weapon but the experts claim the knife blade is too small to accurately test for dna.

with those debt talks stalled and the default clock ticking are hardline conservatives now hurting their cause? we're going to talk about that with the great granddaughter of the president who presided over the great depression. author margaret hoover joins us. coming up. it is 40 minutes after the hour. every day, all around the world, energy is being produced to power our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment we are america's natural gas. -why? -why? -why? [ female announcer ] we all age differently. roc® multi-correxion 4 zone moisturizer with roc®retinol and antioxidants. lines, wrinkles, and sun damage will fade.

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it feels like the last minute on the debt talks bought this has been in the work for months. the deadline only eight days away. how we got to this point. the treasury secretary has been warning about this since before january. he said we had until may before we hit the $14.294 trillion debt limit. the treasury department trapped other sources instead, once that limit was hit, the government can continue to pay its bills over the summer. treasury secretary tim geithner told congress it has until august 2nd to raise the debt ceiling or face default. in may, bipartisan talks, bipartisan talks with congressional lawmakers. in june, those talks broke down over republicans insistence the deal include revenue increases along with spending cuts. now july, the president gets

involved. he begins to hold debt talks with speaker boehner. secretly working with some deals working with speaker of the house to reach a deal, but guess what? those talks broke down again by july 22nd, speaker boehner broke off the talks with the president amid disagreement over taxes and entitlement programs. over the weekend the president it continued talks with congressional leaders, but you know what, little progress has been made. the bottom line, washington has had months and months to figure this out, but has not been able to reach a deal and again, only days before the united states has huge bills to pay in the beginning of august. >> we are journalists, we are hear to report, not here to opine, fair to opine at this point as a journalist, as a veteran financial journalist that you are, this is ridiculous. >> ridiculous in all capital letters. this is a political crisis not financial. we have financial problems we've been reporting on, this is a political problem and that's what's kind of --

>> when people say america could be the next greece, no greece has a financial crisis. america has a financial crisis that is exacerbated by a remarkable political crisis. let's continue this conversation. our next guest knows a thing or two about hard economic times, margaret hoover grandfather, herbert hoover, who presided over the great depression. worked on two presidential campaigns, with us to discuss the debt talks and hardline taken by some conservatives and tea party members in this debt negotiation and written a book called "american individual i will, a new generation -- how a new generation of conservatives can save the republican party." we are joined by democratic strategist kiki mcclain, in washington. i'm going to start with you, this is a no spin zone. can we say that? is that a different network? >> don't say that now. >> no political spin here. no bumper stickers, no partisan talk. you're great at this. how does this end? >> i can't tell you right now because it's a moving target. here's what's fascinating to me

about this, ali, you guys are right about the political nature of this crisis, because every time in this case, and i come at this from somebody who's been a real supporter of having a bipartisan solution on this, i think you know that's my politics, but every time republicans, particularly the speaker or mr. cantor, his number two, has said there's something they wanted the president has agreed to that, then they get up and walk away from the table. we want significant cuts in spending. great. the president says i'm there. i'm for over 4 at the number. we want the president at the table. great. the president comes to the table. that's not enough. they get up and walk away. it continues and continues and continues. here's why. because ultimately, the far right extremists are controlling that caucus and these guys in the republican caucus right now are all about their own political survival and that's why they won't agree to put everything on the table including those revenue

increases. >> margaret, there is definitely something to be said for keke's point that there are hardline conservatives who come in here taking a line that says we're not compromising. there will be no tax increases or revenue increases or cutting of tax loopholes or credits. that's not part of the deal. >> there are those people in the house republic in caucus, not the people at the leadership table and i think those people are people that boehner and cantor are having to deal with. and the message to them is, look, we're at a point now, where compromise doesn't mean compromising your principles. we've gotten to this point and gotten to this point because 87 freshmen elected to the house of representatives, put new urgency on reforming debt and deficit, fiscal future of the country an we're not going to lose. >> the 87 freshmen, many who came in on the wins of the tea party. >> absolutely. >> you have 230 i think who have signed the grover norquist pledge, american for tax reform pledge they will not increase tax reform.

bottom line, how do you -- how does the math get you a compromise with people who won't compromise at all on taxes? >> look, i mean there's boehner had 800 billion on the table and closing loopholes, ethanol, wind tax credits and this is a concession for many of these tea party folks but they're willing to make it. ki ki, i appreciate your characterization that democrats -- the republicans keep moving the goal posts and republicans would say that's what's happening on their end as well. at the end of the day, we've got eight days as we both know we have eight days to probably pass what we're going to pass is a short-term debt ceiling raise, with spending cuts because that's probably the only thing that's going to get us over the line because nobody is willing to have -- >> good. >> here's the problem, we don't -- >> talk again in few months. >> we don't have eight days and you know that because the asian markets have started to react to us this morning. as we speak. it's clear that any legislation has to be posted this afternoon

in order to make that deedline. here's the real rub of the matter, people ought to pick up their phones and they ought to call their members of congress today. and that is this, there is a chance to make big change for this country, long-term change, not just to get somebody through the next six months or their primaries next fall. the president put on the table the plan, democrats are there in the senate to say, let's cut spending, let's do the right thing on revenue and let's race this debt ceiling and get it done. >> the president having some problems with democrats. >> sure. >> when you talk about that big deal -- >> the president -- >> we don't have eight days, probably have 48 hours. >> the president took heat in his own party because he said there is some place on entitlement reform that i will go. he didn't make it an all or nothing deal and was willing to go there in a big package on the table all last week. today is the day. >> ki ki, i appreciate that. >> we can make it happen. >> but the reality is, we all know there has been no plan from the president of the united states. there has been frameworks, speeches -- >> margaret in that framework -- >> the house of representatives and only bill passed in the

house of representatives. >> the reality is -- >> hard to work with the white house when you don't have something in writing from them. >> the realty is, the president has been public, he would stand up for the bigger process of cutting spending including entitlement reform, he's been very public on that. and republicans just chose not to take him up on that offer. >> margaret, there's got to be some tax hikes, come on. >> we can close loopholes, we can do -- there's a lot of things we can do. >> tax reform. >> yes. tax reform. >> you understand some people including grover norquist and his group says they're tax hikes. >> we're all willing to make compromises on that. >> haven't seen it. >> if you two were hammering it out we would have a deal. margaret hoover and keke mcclain. margaret's book "american individualism, how a new generation can save the republican party." we will be right back. [ cat meows ] ♪

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here's a look at your morning headlines. markets across the globe reacting to the stalled debt talks in washington. closed lower in asia and down in europe. president obama has canceled two fund-raising appearances to work on a compromise. a minute of silence observed throughout norway for the 93 victims of friday's bloody terror attacks. within the next hour the suspect anders behring breivik is expected to appearing pier in an oslo courtroom for a bail hearing. a string of suspicious fires

in california over the weekend. police looking for an arsonist who set as many as 18 fires in north hollywood. fires began in cars but spread to buildings. no one has been hurt. took a superhero to beat the boy wizard. "captain america" swooped in to take over the box office raking in $65.8 million. "harry potter" knocked to second place. last week it broke the record for the biggest movie debut in history. you're caught up on the day's headlines. "american morning" back right after this.

the battle in north dakota, between a school, ncaa and the state over a native american nickname. the ncaa threatened to punish

north dakota if it doesn't drop the fighting sioux nickname and mascot saying they are offensive to american indians. the state has passed a law requiring the school to keep the name and logo. basically a way of telling the ncaa to stay out of it. the league says it is not backing down from its policy. >> no word of changing the names of north dakota, south dakota, illinois, iowa, the fighting sioux and the reputation. a week from tomorrow the federal government could run out of cash to pay its bills. the republicans and democrats standing firm unwilling to abandon their position when it comes to raising the debt ceiling. >> our question of the day, who do you think is to blame for the debt gridlock. facebook sean says we have to blame ourselves because we elected these people who now do nothing. but in reality i believe it's the stubbornness of the republican party and its lack of willingness to work on anything constructive with this administration.

i like the fact that sean is willing to say that we, who do not like compromise that is not in our interest, have some responsibility in this. >> interesting. supporters of the tea party republicans say no, it's the tea party republicans are finally doing something after years and years. we're going to use the leverage of our debt ceiling to get the debt and deficit under control. john on twitter says -- this isn't about spending more. it's about paying the bills. you bought the car off the lot and saying actually i couldn't afford that car, i'm going to keep it but not pay you. that's what the american government is doing. send us an e-mail, tweet, tell us on facebook. we'll read your thoughts later in the show. a quick break. it's 56 minutes after the hour. [ female announcer ] sweet honey taste. 80 calories per serving. 40% daily value of fiber. i'm here in the downtown area where the crowd is growing.

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unlike fish oil, megared softgels are small and easy to swallow with no fishy smell or aftertaste. try megared today. markets around the world falling after the president and both houses of congress go their separate ways in talks to raise the nation's credit limit. politics in washington, putting the global economy on the brink. >> he wants to explain why. the man who confessed to a

rampage in norway, he has his day in court this hour before the search for bodies is over. >> the defense team says she lacks credibility. dsk's accuser going public for the first time this morning with her side of the story. >> what a drag, a man grabs on to a moving car and goes for a wild ride. what was so important he could not let go? wow. on this "american morning." good morning. it is monday, july 25th. welcome to "american morning." a lot going on this morning. kiran is off. let's get to it. >> that's right. there are worries about the price you're going to pay because president obama and republicans are unable to reach an agreement on raising the debt ceiling. this morning as the clock ticks down to the deadline, just eight days away now, investors taken notice, markets are mostly down in europe where trading is under way, closed down in asia and this will have a direct effect on your 401(k) and ira.

dan lothian live at the white house. >> what's going on with the two sides? are there negotiations going on behind the scenes? >> yes. the talks do continue. as you know there were talks over the weekend, but no compromise at all. the hope was they could reach some kind of agreement in order to settle not only the global markets but markets here domestically. but that didn't happen. senate majority leader harry reid is pushing a plan that would extend the debt limit through 2012, and have about $2.7 trillion in cuts. on the republican side house speaker john boehner looking for some sort of a two-step process that would raise the debt ceiling through 2011 and then again in 2012. he says whatever plan they have, should adhere to the principles of cut, cap and balance which the house passed last week, but rejected in the senate. nonetheless both the president and democrats have been very clear about saying they don't want a short-term deal to raise the debt ceiling. they want to make sure it goes to 2012. take a listen to what secretary

geithner said yesterday on "state of the union." >> what we cannot do, this is very important, what we cannot do, because it would be irresponsible, is to leave the threat of default hanging over the american economy for a longer period of time. look, you know, back in january, more than seven months ago, we started this process of working with the congress to get them to raise the debt limit. it's taken us seven months to get to the place where we are now. we are almost out of runway. >> as you know this is the political season. president obama has been raising millions of dollars out there on the campaign trail. he did have two fund-raisers here in the d.c. area tonight. he has pulled out of those. vice president biden will be stepping in his place. >> all right. dan we'll continue to cover it with you, clear your skeds physical why you have fund-raisers this week, dan. >> i've cleared. i did clear all of them. >> christine and i are in the process of having our people cancel ours as well.

anders breivik, the guy accused of -- >> in norway. >> scheduled to appear in a courtroom within the hour. the 32-year-old murder suspect admits committing the terror attacks that claimed 93 lives on friday. he wants a chance to explain himself. he believes the massacre was horrible, but necessary. >> on friday breivik allegedly set off a bomb near some government buildings. that bomb killed seven people. then police say he traveled 20 miles to an island youth camp in utoya, norway, and there he slaughtered at least 86 more people in a bloody ambush, picking off young people as they were running terrified one by one. diana magna live from utoya. they had a minute of silence in the last hour or so. what's happening right now, diana? >> yeah. a minute of silence an hour ago where people have been laying floral tributes in oslo and also here. we went up to an area

overlooking the island of utoya just about an hour and a half ago where there was a steady stream of people bringing flowers to remember those children who were killed as they were running, swimming for their lives from the island. i tell you, reporting on this story for the last two days, listening to the survivors' stories, it has been really a horrific story to cover. anyway, i spoke to one person coming there to lay down flowers about why he thought and the possibility of anders breivik to have an open trial was a bad idea. this is what he had to say. >> his message should not be spread too much. it's not good thoughts. he want the whole world to see and imagine his thoughts. i don't think that's the best way. >> what did you think when you read about his manifesto? >> i was scared. i think this is hitler number two. >> reporter: you know, this

manifesto is a huge document that appeared on-line allegedly by the killer on the day he committed these attacks and really details some very far right extremist, anti-immigration thinking. and his belief that it's really european politicians who are to blame for allowing muslim immigrants into europe and so polluting the ethnic purity of, for example, the norwegian race. some insight there into the mind of the killer. but the court has decided that this will be a closed hearing, possibly because of the public outcry about breivik being given a platform to air his views. >> it's interesting. it's an interesting combination of forces there, the idea it's open so the press and media can see what's going on versus closed because of that gentleman you entire viewed who i think expresses the view of some norwegians that why give this guy more of a microphone than he already has. for him it might be a good thing for him to say what he wants to

say. we'll stay in touch with you throughout the course of the day. four teenagers have been badly mauled by a brown bear and her cub deep in the alaskan wilderness. it happened saturday in talkeetna, about two hours north of anchorage. the teams were in the 24th day of a month-long backpacking survival course. two of them are facing life-threatening injuries. one teen who managed to fight the bear off called home and told his sister what happened. >> he said it was [ inaudible ] he said when he saw the bear he ran and looked back and he fell, that he saw the bear then the bear got on him and he started kicking the bear. he kicked it in the nose. >> wow. she says her brother suffered bites to his legs and ankles, but he is expected to recover. an autopsy to determine what killed singer amy winehouse will take place this afternoon. the 27-year-old's publicist and

friend tells britain's "the sun" winehouse died alone in her bed. many are speculating her death is connected to her well chronicled substance abuse. mementos from mourners continue to pile up outside her london apartment. her 2006 album is now starting to make it on to charts, downloaded a great deal. very, very creative artist and singer. it's very sad. >> a woman in control of her voice that was her art but clearly not in control of her life. >> she sang about it. the thing is this was such a public destruction. it was sad to hear. world is missing her. >> wedding bells have been ringing nonstop since same-sex couples could legally marry in new york state. the law took effect yesterday. >> by the laws of the state of new york, i now pronounce you married. you may seal your vows with a kiss. >> and that's what you're looking at the first couple to marry in new york city. phyllis and connie, they tied the knot at the city clerk's

office as a crowd of onlookers cheered. >> it was just so amazing. it's the only way i can describe it. i lost my breath and a few tears and it's indescribable. >> a handful of protesters gathered across the state claiming governor cuomo redefined marriage without giving voters input. taking their voice in cooperstown, roberto alomar, pitcher bert bly lee ven were inducted into the hall of fame yesterday. alomar, a blue jay, one of the greatest to play his position ever, went in, as a blue jay, blyleven, a minnesota twin, i auto believe born in the netherlands waited 15 years to get in, fifth in major league history with over 3700 strikeouts. some calling it astral ya's sporting feat ever. evans riding into paris with the yellow jersey, became the first man from his country to win the

tour de france, the oldest -- >> really? >> in 63 years. there you go. >> all right. still to come the hotel maid who claims former imf boss dominique strauss-kahn sexually assaulted her is speaking out. we'll tell you what she is saying about what happened in the hotel room that infamous day. spr from a sweltserings week to the wettest day ever, chicago drying out after a record downpour. nine minutes after the hour. ...was it something big? ...or something small? ...something old? ...or something new? ...or maybe, just maybe... it's something you haven't seen yet. the 2nd generation of intel core processors. stunning visuals, intelligent performance. this is visibly smart.

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a democratic congressman from oregon at the center of an ethics investigation. david wu accused of aggressive and unwanted sexual behavior toward the teenage daughter of a long-time campaign donor. one of wu's advisers telling politico the congressman will not resign but won't run for re-election in 2012. >> it was chicago's wettest day ever. >> were you there? >> i was. i think rob called it a stalled front.

felt like this thunderstorm never went away. it dumped. firefighters on boats pulling people interest stranded cars. close to seven inches of rain fell in a matter of hours on saturday. it came down so fast that sewers backed up. highways shut down. train service was suspended. every person i know said they had water in their basement. >> rob marciano in the extreme weather center. >> a stalled front, is that what it is? >> slow moving one. the problem is we built up so much humidity the past week or so with this heat wave, which you know the water vapor in the air was the biggest factor with it, and then all of that got wrung out with the front that passed through chicago over the weekend, so this is going to bring some cooler weather to the northeast, briefly and then we're going to rebuild the heat through time. in between we still have a fair amount of humidity across the eastern third of the country and still, some record high temperatures from yesterday. check them out. raleigh, north carolina, 101, atlantic city, jersey, 100 degrees yesterday, wilmington saw 100, georgetown seeing 99 and 98 in philadelphia.

today will be a little cooler because you'll have cloud cover and a little in the way of thunderstorms but will not be cooler across the midsection from dallas to oklahoma city, heat advisories watches in effect again today. temperatures over 100 with the humidity, higher than that. dallas and oklahoma city has seen a spring of over 20 days in a row of 100 degrees plus and today no different. 106 in dallas, 95 memphis, 80 new york, that's cooler, 86 atlanta. we'll take that as well. traveling today, atlanta and raleigh will see afternoon thunderstorms, will slow you down, traveling through san francisco early morning fog and low clouds and a couple temperature reading of 65 or so degrees. back to you in new york. >> thanks, rob. the new york city hotel maid who claims dominique strauss-kahn sexually assaulted her says the former imf chief was in her words acting like a crazy man during the incident. >> for the first time since their may encounter the 3-year-old accuser coming forward with her side of the

story in her own words. this is video from an interview she gave to abc news. she told her story to "newsweek" magazine, claiming she never wanted to go public but now she feels she simply has no choice. susan candiotti joining us with the new development. we're hearing from the accuser. >> it's a sgriping, compelling account as we read it. not necessarily anything that is surprising or new, but you can't -- it's hard to put it down, hard not to listen to what she has to say. in short she talks about coming into the hotel room, thinking that there was no one in there and then discovering a naked man she says coming out of the bathroom at which time she says to him, oh, my god, i'm sorry, she tells "newsweek" magazine. he says, you don't have to be sorry. he says, you're beautiful. she says sir, stop this, i don't want to lose my job. he says you're not going to lose your job. and remember that authorities have said they found forensic

evidence of a sexual encounter. she said she had no idea who dominique strauss-kahn was before this allegedly happened and he has pleaded not guilty. she goes on to tell abc news, i want him to know there is some places where you cannot use your money, you cannot use your power, when you do something like this. >> the question here is what -- his lawyers are sort of striking back saying this is highly unusual for someone to be using the press to pressure a prosecutor it to prosecute and the prosecutors haven't made a decision yet apparently. >> that's correct. the prosecutors aren't saying anything about the fact she's given an interview but she's coming forward and doing this is remarkab remarkable. remember when her attorney came out and explained what happened but they're concerned prosecutors might drop this case. yeah, war of words between both sides. dsk lawyers saying the number of rallies, press conferences and media events the defense has orchestrated is exceeded only by

the number of lice and statements she made to law enforcement, friends, medical professionals and reporters. the maid takes issue and says in his words they are defense attorneys and clearly believe these types of false personal attacks are part of their job description. he says but that excuse isn't sufficient when we are dealing with a brutal sexual attack, a mountain of physical evidence, a victim who spoke out immediately and numerous corroborating witnesses. so, it is a remarkable turn of events here and we still have no decision from prosecutors about what they're going to do next. he is scheduled to appear in court one week from today and at that point we're expected to get some kind of status report on where the case stands. >> that's when the prosecution is likely to say whether they've got enough to go forward with or -- >> they might, but they might also ask for more time. we know they've been meeting with other accusers of dominique strauss-kahn before they make a final decision. >> okay. susan, thanks so much for that. in the next hour of

"american morning," christopher dickey is the paris bureau chief, middle east editor of "newsweek" magazine, interviewed diallo for the "newsweek" cover story and we'll get his impressions of the accuser and her story. still to come on "american morning," the man behind the massacre, new information about norway terror suspect anders breivik and why he decided to kill 93 people on friday. it is 18 minutes after the hour. [ carrie ] i remember my very first year as a teacher, setting that goal to become a principal. but, i have to support my family, so how do i go back to school? university of phoenix made it doable. a lot of my instructors were principals in my district. i wouldn't be where i am without that degree. my name is dr. carrie buck. i helped turn an at-risk school into an award winning school, and i am a phoenix. [ male announcer ] find your program at phoenix.edu.

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21 minutes after the hour. minding your business. lots to talk about this week on wall street. lots. u.s. market poised to open sharply open. dow down about 100 points,

nasdaq, s&p 500 futures trading lower ahead of the opening bell. you'll feel it in your 401(k). the debt clock ticking. lawmakers in washington haven't reached an agreement to raise the nation's debt ceiling. you know that already. we're beginning to see the effects of that uncertainty in world markets. stocks in china and japan closed lower, european marketing trading lower. moody's dealing another blow to greece, downgrading its debt again. that's also pushing european markets and u.s. stock futures lower today. the ratings agency is forecasting the greece will have to default on some of its debt, despite the european union approving another bailout for the country last week. investors have to sort through more corporate earnings report this week. today, texas instruments and netflix report their earnings for the last quarter after the closing bell. later on this week, big oil exxon mobil and chevron, expected to report big profits for the second quarter. investors waiting for the first official reading on the nation's economic growth for the last quarter. that's the gdp estimate. right now economists forecast

that growth actually slowed down to 1.6% as the economic recovery lost some steam. those gdp numbers come out on friday. and gas prices are trending up again. the latest lundberg survey says even though demand for gas is lower due to a weaker economy, recent high oil prices are pushing gas prices up nationwide. don't forget for the latest news about your money check out the new cnnmoney.com. we'll be right back. "american morning" coming back after this break. where do you go to find a super business?

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welcome back to "american morning." a court hearing under way right now in oslo, norway, for the terror suspect accused of killing 93 people in the bloody attacks on friday. >> anders breivik is -- left behind a 1500 page manifesto. police are examining it right now. in its suspect reportedly lays out his plan for the attack as well as some radical right wing views that may give us insight into his motives.

here's cnn's nic robertson. >> reporter: this is how the man accused of being norway's most notorious mass killer apparently wants the world to know him. a smiling, norwegian nationalist, a serious military-style marksman. not just a cold-blooded killer police say stalked and gunned down innocent young victims on a remote rocky island. anders behring breivik is believed to have posted these images to youtube in a 12-minute video embedded in a 1500 page manifesto just hours before he began his deadly killing spree with a massive car bombing outside government offices. cnn cannot independently verify their authenticity. together, the video and manifesto appear it to answer how and why the 32-year-old

became a mass murderer. the video reveals an intense fear that muslims will dominate europe and anger at what the author calls marxist european governments he blames for doing nothing and a belief that the christian crusade is the solution. a belief he hid when he met this mainstream right wing politician eight years ago. >> i am sorry because i didn't. if it had said something maybe we could have discovered it. >> reporter: he suspects breivik was attracted to his party's anti-immigration reputation but found them too moderate. >> i probably have thought he would find people inside our progress party that would be agree with him or something like that and he wrote in his manifesto he was disappointed. >> reporter: the manifesto titled "2083, the european

declaration of independence" rails against such political inaction. my government and our media capitulated to islam several years ago. thousands of muslims pouring in annually, through our asylum institution, or by family reunificati reunification. the situation is just chaotic. these suicidal traitors must be stopped. the author turns his temper on his family, on friends, cruelly discussing sexual diseases he claims they've had. cataloging their failings. he also reveals why he rented a farm outside oslo, to plot undefect texted, a mission he describes in graphic detail. i have just completed the explosives research phase and have summarized several new chapters for the compendium. my rifle application came through and i have now ordered an 800 euro silencer,

specifically created for automatic and semiautomatic rifles. needless to say, this is an extremely vulnerable phase. in fact, it is the most vulnerable phase of them all. if i get through this phase without trouble i will be very close to finalizing my operation. the whole ugly episode is so devastating norwegians are only beginning to grasp the enormity of it. breivik's manifesto is like a second hammer blow, too soon to phantom the implications of it, but already the question is being asked, how did he get away with it? nic robertson, cnn, oslo, norway. >> what a remarkable turn of events. one that just you -- in some places you can say this undercurrent was there, this is not something we knew about or the world knew about. >> it's known as a peaceful and accepting country and it's a

very hurt turn of events and country still shocked and reeling from the friday event clearly. >> your top stories now. democratic congressman david wu is at the center of an ethics investigation. the oregon representative is accused of making unwanted sexual advances toward the teenage daughter of a long-time campaign donor. wu has resisted calls for his resignation. the new york city hotel maid who claims the former imf chief dominique strauss-kahn sexually assaulted her is speaking out. 32-year-old nafissatou diallo in an interview with "newsweek" magazine and abc mag is zone saying, quote, i want justice, i want him to go to jail, i want him to know you cannot use your money, your power when you do something like this. no deal as president obama and republicans work on plans to raise the debt ceiling. the president canceled a couple fund-raisers to deal with the issue. one week from tomorrow the government could run out of money to pay its bills. >> that's why the markets are spooked. 401(k) or ira you will be paying the price for washington's

inability to reach a deal to raise the debt ceiling. market s overseas are lower. gold spiking. >> that's where people go when they don't know what's going to happen. stock futures in the united states pointing toward an negative open. minisha is live in hong kong, nina is live in london. market reaction around the world? >> we woke up monday morning here in asia expecting to see a deal. we didn't see one as we all know and that was a bit of a disappointment. i say bit of a disappointment because the market reaction seems to have been muted, like a drip drip news feed over the u.s. debt crisis over the last few weeks as we get closer to that deadline. that muted reaction markets did pull back. the nikkei was a good example of stocks there actually being affected because of their exposure to the u.s. economy. there is a word being punched around here in asia by some of the analysts, downgrade. in any case, what if there's a downgrade. we're now talking about the credibility of the u.s. economy

in view of the rest of the world. so with that going around, you have stocks like honda, toyota, these are the big carmakers everyone's heard of, coming off by the close of the session. honda one company that has 44% of its revenue coming from north america, definitely something to worry about. otherwise, there's been domestic news around that has pulled markets back. i would like to say that so far this reaction has been muted to the u.s. debt crisis but we are very much in a wait and see mode over here and we do need to see some movement. don't forget in terms of who holds u.s. debt, asian investors are some of the biggest holdest of that u.s. debt and going to want to know what's going to be happening with that debt in the coming few weeks. so, reassurances coming from secretary of state hillary clinton. that's been pretty good, perhaps another reason why the asian stock markets actually closed in pretty good form, given the lack of news that we're getting from washington. but let's get the pulse of what's happening in european markets in response to this debt

crisis. nina is standing by in london. >> yeah, everybody's wondering on this side of the atlantic where they should be putting their money, not just returns but effectively for safety in light of the ongoing u.s. debt debacle. we have the european markets broadly speaking lower, off the interday lows, yields on the bonds in this region rising which means the sovereign debt here is perceived as being just a bit riskier than it was a couple months ago and also the euro rising against the u.s. dollar. one bright spot, gold, as christine was telling us two minutes ago, gold has been spiking higher. i can tell you it surpassed another record of $1,624 an ounce. no surprise to see that's the case, ali, because, of course, this is the ultimate safe haven especially now that the u.s. treasuries that were the ultimate safe havens before are the ones very much in the line of fire. >> you and christine share a view while we talk a lot about stocks and that's where we see

instant reaction to things, when looking at u.s. debt, watching bonds and the yields, the interest that's paid on those bonds, is going to be more important. >> it is. absolutely. we should also point out to our viewers the world stock market is worth $40 trillion, that's quite a significant figure but the bond markets are worth $80 trillion and counting. so that very, very significant. a lot of that money is held in sovereign, as we were saying before, for the united states and germany, once perceived to be extremely safe bets and now that we've been having talk about a default potentially for the united states, the world's largest economy, also a restricted default for euro zone nation like greece, suddenly they seem just a little bit less safe, ali. >> no kidding. all right. nina and monisha we'll continue to watch the world's money with the two of you. how did we get here? the deadline to raise the debt ceiling only eight days away we want to show you how we got to this point. on may 16th the u.s. government

defaulted basically or sorry hit the debt ceiling, 14. -- this is a big number, $14.294 trillion. that's when the debt ceiling was hit. the treasury secretary had to tap other sources for the government to cover its bills. treasure secretary geithner telling congress it has until august 2nd now to raise the debt ceiling again or then face default. in may, vice president biden started bipartisan talks with congressional lawmakers, but by june the talks broke down after republicans sinced the deal include revenue increases with spending cuts. now july, saw the president get involved here. directly getting involved in talks with congressional leaders holding secret meetings and working with the speaker of the house john boehner to reach a deal. on july 22nd speaker boehner's office, though, broke down these talks amid disagreements on taxes and entitlement programs over the weekend the president continued talks with congressional leaders but little progress has been made. the bottom line, washington has

had months to figure this out, but hasn't been able to reach a deal. >> mark preston told me this morning, don't be spriged, that's how washington does it. i hope he's right. i hope everyone in washington knows there has to be a deal fast and it's politics because this is going to hurt people in their 401(k)s and that's not fair to have politics actually take a piece out of the savings and the retirement of working americans. >> ali, last hour you asked me if i thought it was ridiculous. i think a better word, danger s dangerous. >> it was ridiculous a month ago. now it's dangerous. christine. this brings us to our question of the day. who is to blame for the debt gridlock in washington. we want -- actually, in washington, is not part of the sentencep. who is to blame for the debt gridlock alone. might be somebody outside of washington. e-mail us, give us a tweet or tell us on facebook. we'll read through some of your answers later in the show. two new suspects arranged for the alleged beating of a fan outside dodger stadium expected

in court. charged with assault and mayhem on friday for the attack on bryan stow. at the same time police cleared a man who was the prime suspect. stowe, a giants fan and father of two, was nearly beaten to death in the dodger stadium parking lot in march. he suffered a skull fracture and brain damage. he remains in the hospital in san francisco. heisman trophy winner and former running back mark ingram said to be okay after his car collided with an 18 wheeler over the weekend. here's a look at the aftermath. in front of his infinity smashed in, both air bags deployed. police say everyone was okay including the truck driver. police say drugs or alcohol were not involved. the new orleans saints picked ingram in the first round of the nfl draft this year. it could happen today. the nfl players and executive committee meeting today in washington. >> we've been saying this for a week. it's almost over. going to happen. >> they're going to -- they could vote on a new ten-year labor deal that the owners approved on friday. if they sign off on it today, or

tomorrow, or yesterday, free agency and training camps could begin on saturday. >> we means we may not lose any of the real season. not that i bet on football games anyway. wedding bells for big ben. pittsburgh steeler quarterback ben roethlisberger married ashley harlin in a small ceremony on saturday. details kept secret until the end. he surprised a lot of steeler fans by announcing his engagement after the super bowl loss to the packers earlier this year. he was twice accused of sexual assault in the past but never charged. up next, academy-award winning director kevin mcdonald known for major hollywood movies like "the last king of scotland." his new project capture 24 hours of everyday life around the entire world. he asked you to upload video to youtube. took that footage, made it into a documentary called "life in a day." ready for your close-up? kevin joins us live in the studios next. she's had these shoes a long time.

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gloom good morning, new york city, partly cloudy, 76, feels like it's 76, thunderstorms about 80 degrees. >> last week, michele our producer was putting this pictures up of new york and thought she was lying. you couldn't see anything. soupy, gross, disgusting, that looks nice. get ready for your close-up a film debuts over the weekend and you are the star "life in a day" a user-generated feature film basically shot in a single day. it's the brainchild of oscar winners kevin mcdonald and ridley scott. >> they had youtube users to film and upload videos of what happened on july 24th, 2010. 81,000 submissions all over the world, 8100 hours of footage. >> creative way to make a film. >> joining us is the director kevin mcdonald. this is -- you're experiencing

the story through their eyes and how to tell that story of that day. what made you decide to do this? >> well, just because youtube is an extraordinary tool and it felt like, you know, you could do something with this that had never been done before, make a movie that had never been done before and you could get inside the intimate parts of people's lives that news shows like yours, as great as they are, don't. you're interested in the big stories, not interested in the little, fundamentals, tiny things that make us tick. >> these stories is a big story. one story is a woman who had a double mastectomy and her husband filming her and her son, saying daddy, stop the filming. that is the biggest thing that will happen in their lives. >> absolutely. that's why they filmed. they filmed because they thought this is a huge thing, great importance to us, and we want other people who might go through the same situation we're going through now in the future, to know what it's like. incredibly brave because their son is acting up quite a lot, very frightened about what's going on, his mom has come out

of hospital and they're just totally open and honest about showing and sharing that with us. that's the thing i took away from this more than anything else, how generous people are in sharing their lives and wanting other people to know what they know. >> from the moving to the mundane. >> show video from the movie, but i asked you when you started this project, you picked a day, had no particular importance, july 24th, 2010, no big event scheduled for that day. were you looking for the extraordinary, were you looking for the ordinary, and what did you end up getting? >> i would say, you know, trick answer i was looking for the extraordinary through the ordinary. >> right. >> i was looking to find out about the things that make us all tick. what connects people around the world and to do that, you asked people to film their ordinary lives, what is going on in your -- >> your call to action, film the ordinary life. >> and answer three questions. what do you love, what do you fear, and what's in your pockets or handbag.

so we used those three questions and the answers to those to structure the film. >> what did you find that connected -- the connective tissue that pulls us all together, so many different people, 4500 hours of video, is there a connection or everyone so different and that's the story. >> the story really is about connections because when you ask ordinary people, people who aren't kind of film professionals, aren't journalists, to film what's important to them, they come down talking about things like, you know, children, about food, about things that they do that are exhilarating, things like going base jumping or sky diving and people doing that. or they talk about illness. >> interesting. >> or death. it's kind of like those are the things, the building blocks, we all have in common and you look around these clips from afghanistan to iraq to california to copenhagen, wherever it is, and you see

actually everybody is frightened of death, everybody loves their children, you know, so that sense of unity is very reassuring i find, many optimistic. i'm a pessimistic european. normally i think life miserable but this made me think life is pretty great actually. >> i hate movie critics. nobody ever writes about a movie why i would want to see it. if i'm telling my buddies why they should see this movie, what's the pitch is this. >> it is a time capsule of a moment on earth and it's made into a movie, almost 4,500 hours, made into a movie. it's a series of youtube clips. well, it's actually made to feel like it's 95 minutes long and you go on a journey, you start at midnight on one day and end at midnight on the next and you experience the world in that day and you laugh and you relate to characters and i think you cry a bit. i had a screen last night at the museum of modern art, people were in floods of tears, but

they also feel uplifted by it. in these times particularly. you need an uplifting movie. >> everyone fears death and loves their children. that's what it boils down to. boils down to human experience. >> i look forward to it. we enjoyed sort of watching how you developed this and it will be fun to watch it. i'm going to see it. kevin mcdonald the director of "life in a day" released this weekend? >> this weekend. >> thank you. still ahead, what makes time travel possible? is its flux capacitor? apparently not. >> what? you can't go back in time. >> in a de lor yan. a team of physicists in hong kong conduct an experiment to see if time travel was possible. sadly, the results are not encouraging. we will tell you about them for those of you who -- >> still believe. >> exactly. >> arnold schwarzenegger's 13-year-old son seriously injured? a surfing accident. morning headlines next. it is 49 minutes after the hour. ♪ with diabetes, it's tough to keep life balanced. i don't always have time to eat like i should.

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>> it's 50 minutes after the hour. the suspect in two deadly terror attacks in norway is making his first court appearance this morning. he left behind a 1,500 page manifesto, detailing attack that is left 93 people dead. autopsy for sarah amy

winehouse will take place this afternoon. the 27-year-old singer was found dead in her london apartment saturday. former imf chief dominique strauss-ka strauss-kahn, the woman who accused him is speaking out for the first time. diallo is saying i want justice. i want him to go to jail. democratic congressman from oregon now facing ethics investigation. david wu is accused of making unwanted sexual advances to a teenage daughter of a long-time campaign contributor. wu is resisting calls for him to resign. >> gold up sharply is a safe haven against all this uncertainty. president obama has canceled two fund-raising paernappearances tk on a compromise. pushing u.s. stocks and futures lower this morning.

dow futures down about 100 points, nasdaq & s&p are also lower. "american morning" is back after this break.

atlanta, georgia, 78 degrees. not atypical for this time of ye year. good news, it actually feels like 78. that's happening across the country. some of that extra mumtd is gone. it's going to be 86 and thunderstorms for atlanta. that's fine. that's manageable. >> better than 101. >> yeah. >> and just hot. >> or 115. this is an "american

morning" nerd alert. >> i'm paying attention. >> i knew you would. a team of physicists in london has determined that we'll never, ever be able to travel through time. einstein was correct when he said that the university has a speed limit, that nothing can travel faster than the speed of light. scientists in the past have claimed that they found pulse that is can go faster than light speed. this group says it's impossible. therefore, so is time travel. put the delorian become in the garage. you can't go back to your parents' high school dance. >> that's kind of sad. the movie was still good, though. >> it was. warning for the american family this morning, raising a generation of people who think that smart phones are their friends. people to try to disconnect from the digital world found it as difficult as quitting drinking or smoking. many felt it lonely when they weren't able to go online. >> my husband is so efficient around house right now.

when you walk down the supermarket aisle are you a cart or basket person? i'm a cart person. >> your shopping is better, more efficient. you don't have space for extra stuff, wasteful stuff. >> it makes a big difference. study in "time" magazine says people who choose a basket make more unhealthy decisions. researchers say it has to do with the mind/body relationship, motion of flexing your arm to hold the basket leaves you free to grab candy. >> i guess it's not a reward. that's a strange outcome. >> i think it is, too. eight days and counting until washington can no longer pay its bills if there's no deal to the debt ceiling debate. who is to blame for the debt gridlock? not the debt. a lot of responses from you. maybe that's a good question of the day.

>> i would like to hear what -- this is the gridlock. >> the mess, the gridlock for you on facebook. alesandro says both sides carry equal fault in this matter. they've taken turns leading us to the precipice and now neither will deviate from their radical extremes that lead them. >> spoiled children who don't get their way. the difference is, if they just take their ball and go home, it means disaster for all of us. >> absolutely. on facebook, guys say that the american people are allowing the tea party to hold this administration hostage. he's blaming the american people. >> and the tea party at the same time. >> right, at the same time. >> the president is to blame, raising the debt ceiling in order to borrow more money after all that's been borrowed since he took office is absurd. his policies have prolonged the recession and haven't delivered on his pie in the sky promises that they would have created jobs to bring us out of the recession.

letting him borrow more is like giving an alcoholic the key to the liquor cabinet. >> come out of your shell, john, and tell us what you really think. >> this is about paying the bills they've already signed in for. >> deciding two years in i'm not going to pay for that car. >> it doesn't fit into my budget so i'm not going to pay for the car that i've already been driving. the debt ceiling is about paying what we've already been spending. >> budget future spending. apples and shampoo. two very good, important things. they are two different things. you can't say bus i bought apples i'm not buying shampoo. i actually do do that. >> i like the apple shampoo analogy from the guy who doesn't have any hair. >> that's true. i don't actually pie shampoo so that's not a good analogy. it is about two minutes till the top of the hour.

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the maid who accused dominique strauss-kahn now is talking out, saying she wants to see the former head of the imf behind bars. there are real concerns about the price you and your investment and your retirement on this "american morning." good morning, everyone. it's monday, july 25th. kiran chetry is off this monday morning. >> we've got a lot to talk about. we are in the final throes of this debate or lack of debate. first, the woman who says she was sexually assaulted by dominique strauss-kahn is speaking out. 32-year-old diallo, seen here in an interview with abc is saying, quote, i want him to go to jail. i want him to know there are some places you cannot use your

power and you cannot use your money, end quote. >> the rest of her remarks are the subject of this week's "newsweek's" cover story. the man who interviewed her for that cover story joining us now. good morning. >> it's a pleasure. >> trying to push prosecutors to continue with a case, do you think? >> her lawyers want to do that. i think there's a real issue that the prosecution doesn't believe that they can prove beyond a reasonable doubt that dominique strauss-kahn assaulted her. she's sick of being branded as a low-life, a prostitute. very proud woman. this is her attempt to publicize her case, but also to clear her name. >> you followed the case. you knew as much detail as any journalist would know about it. was there anything you learned in your conversation from her that you didn't know or that surprised you? >> it didn't exactly surprise me, but there was an important

thing in the interview that came out very strongly that hadn't really come out before and that was how important her job was to her and how much she was concerned that having found herself in this bizarre circumstance with a naked man in a hotel room that somehow that would be turned around into a situation where she would lose her job, maybe lose her immigration status in this country, basically lose everything she's worked for, for many, many years. and that was the point of coercion. physically, she's bigger than dominique strauss-kahn. and she's a fit woman. so, there was the whole question, why would she do this if she didn't have a gun to her head? the threat of losing her job or the fear of that was just like having a gun to her head. >> interesting. what did she say about the credibility issues? that's what her attorneys have really been jumping on this woman. she was -- quickly went to the police, quickly went to her bosses and then credibility issues came up later. >> her bosses came to her, her supervisor comes in, finds her completely distraught and says what's wrong? and she says, well, i -- can

guests do this to us? and that is how it snowballs. i spent a lot of time with the special victims' squad, people who worked with her, talked with her soon after the event. they work with people who have been assaulted or are lying about being assaulted all the time. they found her to be incredibly convincing. >> these are professionals that deal with victims. >> absolutely. >> you said that there were some forced tears. >> there were. there were. i think the reason the prosecution is so worried about this case is not really anything she says in her account of the attempted rape and the sexual assault. it's that it is clear, she admits, that she lied on her asylum application about a rape in begguinea, her home country. she had a rehearsed version of that story to tell to interviewers in the asylum process that would move people to tears.

so, if you put her on the stand and you say you lied about that. you moved people to tears about that and that wasn't true, how can we trust your account of this? the thing to remember, we don't know what strauss-kahn's account of this is. his entire defense is built on tearing her apart. >> a good prosecutor puts her on the stand and says in many countries, there are three possibilities for asylum and it is not uncommon for people to lie for asylum. >> over a course of hours, doing an interview like this, it does clear up things. when i heard she rehearsed for her asylum and then it turns out she can't read or write. that's why she was listening to a tape. >> what about her conversation with this person she knew? >> in the detention center in arizona? >> yeah, yeah. >> that is really a bad piece of journalism on the part of new york times and everybody who

picked up on it. she supposedly says to him, this is a rich guy. i know what i'm doing. they seem to be talking about money the day after the event. >> talking in their own language, by the way. >> in their own language, difficult to find a good translator of that particular dialect, so on and so forth. all of that took them a long time to transcribe. and when that quote was leaked to "the new york times," first of all, it's not a real quote. it's a paraphrase. secondly, they didn't have the transcript. they had a one-page summation of one or more conversations. to convict her in the public mind, which to the larger extent of what happened, of being a money grubber or gold digger, depending on a paraphrase of something in another language when we don't have the transcript, this is just not on. >> interesting. christopher, thank you for this. christopher dicky is the paris bureau chief of "newsweek" and the daily beast.

definitely worth the read. >> the story continues to be compelling with all the twists and turns. >> it definitely does. congressman from oregon is the interest of an investigation, david wu is accused of unwanted sexual advances to a teenage girl of a long-time contributor. new this morning, political force has entered the debate, financial markets. they're down overseas because of washington's inability to strike a deal, or at least in part because of that. on yesterday's state of the union, secretary timothy geithner stressed that now is not the time for lawmakers to inject uncertainty into america's economy. >> we remove this threat of default from the country for the next 18 months. very important we do that. >> with the election? >> through the election. this is a hard thing to do.

you want to take this out of politics. you don't want politics messing around with america's credit. >> today, president obama is canc canceling two fund-raising appearances so he can focus on the debt ceiling crisis. >> dan lothian is at the white house. where are the two sides this morning? they seem to be, each of them, in their bunkers. >> reporter: that's right. >> nervously eyeing european and asian markets. >> reporter: that's right. they're still divided as ever, hoping that a deal can be reached. there's been a lot of concern going into the weekend that there should be some kind of deal that should be developed in order to ease some of the worries, not only in the global markets, but also the u.s. markets. but, of course, no agreement there. what you have from the democrat senate majority leader harry reid, pushing a plan that would raise the debt ceiling through the end of 2012 and have cuts of $2.7 trillion, john boehner speaking a two-tier system where

you raise the debt ceiling through 2011 and you do another raise in 2012, he says that any plan should have some of the principles of cut, cap and balance. of course, the house passed and the senate rejected last week. nonetheless, he remains optimistic that a deal can get done by the august 2nd deadline. >> i was born with a glass half full. i'm the optimist. it's about trying to find common ground. yes, i understand the president feels that we need a bigger government, more spending here in washington. i believe allowing the american people to keep more of that money is the best way to create jobs and grow our economy. having said the fact that we're on -- some say we come from two different plantets. my job is to find as much common ground as we can to help move the country ahead. >> reporter: ali, christine, you know democrats have not always been on the same page in this debate.

one thing they all agree on is that they do not want any kind of short-term deal in terms of raising the debt ceiling for a couple of reasons. first of all, they don't believe getting that short-term deal will provide any stability to the financial markets. also, if it's so difficult to get this deal done now, imagine trying to get another deal hammered out in the midst of this campaign season. so, that's why you see really hard pushback from democrats and the president in particular, saying no to any deal that does not raise the debt limit through the end of 2012. >> dan, for you and christine, which i think is important to recognize, and i'm sure the white house recognizes and i hope congressional leaders recognize it. we may be past the point of no return. the credit limit will not just be downgraded because the u.s. defaults. people out there are saying we just don't trust that the u.s. has the ability to do this anymore. >> political disarray, they say, no matter what.

>> short-term deal doesn't address that, dan. >> reporter: i think you're right. that's something you've heard talked about not only here at the white house but up on capitol hill, the concern that even now, if you do some sort of short-term deal to get over the huge hurdle, which is raise that debt ceiling, it's not going to ease some of the concerns, some of the jitters out there in the financial markets. nonetheless, it is something that has to be done, as everyone points out. and this deadline that republicans have been talking about, john boehner, in a conference call with gop leaders over the weekend, is that they need to have some legislation pass by wednesday, which means they should be posting something online by today. another deadline, we'll be watching closely. >> republican spin, white house and democrats position that it shouldn't be short term because that's bad for global markets. the white house is doing this pause it's inconvenient for the president's re-election. that's how they try to spin it, too. there's politics on the

politics. >> dan, we'll be with you a lot this week. thank you, my friend. who is to blame for the debt gridlock. the question is not who is to blame for the debt, but who is to blame for the gridlock. e-mail us, give us a tweet. tell us on facebook. >> stay with us in about 15 minutes. we will talk to jay powell, treasury undersecretary for george w. bush, whether congress can really raise the debt ceiling in just eight days and what means when it happens. >> for those of you who don't find the conversation fascinating, you will find what jay finds fascinating. what checks get paid, what doesn't get paid and how that affects you. an ar sonnisonist is on the. >> amazing video. man spotted clinging to a car. >> look at this. >> car going 35 miles an hour. unbelievable. why he was hanging on and what

happened next. plus, she was beloved for her talent and you infamous for her erratic behavior, arrests and drug problems. singer amy winehouse found dead at her apartment in london this morning. 13 minutes after the hour. purina cat chow helps you well-being. we're all striving for it. nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life.

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want to get back to those attacks that claim 93 lives in norway. 32-year-old anders breivik. >> he set off bombs. that killed seven people. then he traveled 20 miles to an island youth camp and slaughtered at least 26 more. that summer holiday island where so much of this carnage took place.

good morning, diana. >> reporter: police have kept us quite a ways back while police search for bodies. that search is still going on. there are four still listed as missing. police are saying the death count may actually go down, which is good news. on the island itself right now, they're sort of looking for technical evidence, like the kind of ammunition he used, to try to piece together where his ammunition came from, where his gns came from and this chronology of events in that horrific two-hour period, really, an hour and a half that he was able to keep shooting before police got to him. and breivik meanwhile is before a court, before a judge right now. we heard from his lawyer before that, although he has confessed to the killings, both attacks,

he is going to be pleading not guilty. i'll just let you know, christine, one of our producers, one of my colleagues was in the lift with his lawyer just before that hearing, yards before the courtroom, and he said he will go to prison. this will be a short hearing. the maximum term under norwegian law that he can get is 26 years. apparently there are legal ways around that to keep him in prison for life if, indeed, he is found guilty. >> you think the maximum sentence, 21 years, diana -- thank you for that report. a country that is so unused to this -- >> it's just not used to it. >> the legal system -- >> there's not even something -- >> not a penalty for something like this, because it is so out of the realm of the imagination for the norwegian people. >> we'll keep following that. arnold schwarzenegger and maria shriver's son is recovering this morning after being badly hurt during a boogie

board accident in malibu. suffered a collapsed lung, broken ribs and broken bones in the accident. he is pictured in celebrity row at an l.a. lakers game. he is expected to make a full recovery. his mother, maria shriver, who was with him on the beach, is the one who called 911. i never think of those things as dangerous, being on a boogie board. >> right. arsonist, they believe, set as many as 18 fires in north hollywood. fires began in cars and quickly spread to buildings. no one has been seriously hurt. two for the price of one on friday. preparing for a live report. look what he saw. a car drove by with a man being dragged by the passenger window at about 35 miles an hour. apparently it wasn't a carjacking. police say the man, mistakenly thought a friend's purse was inside the car and he was quite determined to get it back. luckily, no one was hurt. no charges were filed.

i don't know if he got whatever it was he was looking for in the car. as my good friend, if i thought your purse was in a car that was driving away at 35 miles an hour, i would advise you as to who to call to cancel the credit cards. >> chivalry will get you everywhere. >> i'll do a lot of things but that is not one of them. it was his wife, so -- >> maybe it was an expensive purse. >> maybe it wasn't a purse. the ultimate knock-off of fake apples store. not just one. it's 20 minutes after the hour. with diabetes, it's tough to keep life balanced.

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23 minutes after the hour. minding your business this morning.

poised to open sharply lower this morning. nasdaq and s&p 500 opening lower. blackberry just announced it is cutting 2,000 jobs and also announcing senior management cuts to cut costs worldwide. in the united states the company has submitted plans over the weekend to build a massive store there. 23,000 square feet. and you probably heard about fake apple iphones and ipods? had an about entire fake apple stores? take a look at these pictures from china where several mock apple stores are popping up. the government there is asking several stores to shut down. apple has not responded to our calls for their comment on the whole thing. winning big "captain america" knocked down the final harry potter movie from the top spot, raking in about $65

million in its opening weekend. what happens if lawmakers don't reach this debt ceiling deal by deadline day? we'll ask former undersecretary treasury jay powell. "american morning" is back after the break.

♪ washed, fair and 83 right now. feeling a little more heated, like 90. thunderstorms, 92 later this afternoon. and there's no heated talks between president obama and house leaders on the republican side because they failed, yet again, to break the stalemate over raising the debt ceiling. there are real concerns this morning about your investments, the markets, the future of the credit worthiness of the country. here in the u.s., stock futures

are down. joining me now live from washington is jay powell, treasury undersecretary under president george h.w. bush, an expert on how the treasury pays its bills and how washington works. welcome to the program, jay. >> great to be here. thanks. >> we are running out of time here. may 16th, the treasury secretary, said we would hit our debt ceiling. we did. treasury pulling strings all summer making sure they could pay the bills that were coming due. what happens right now? john boehner, according to our reporting this weekend on a conference call, said maybe we have 48 hours to get a bill up and -- i mean, we're out of time. >> yes, we really are out of time. if the house doesn't manage to pass something by wednesday night, get it over to the senate and the senate does not meet a filibuster, the president could still sign something and pass august 2.

resulting in loss of payment of bills and that sort of thing. most people don't think there's any possibility of a bond default. that doesn't mean what happens after august 2 won't be -- >> bond fault, united states treasury department is going to pay the interest that it owes to people who loan us money, right? they're going to make sure they do that. if they do that, that means there are other bills that they don't have cash on hand for. explain to me what is happening inside treasury and inside the minds of people who have to figure out how to triage what bills to pay. >> it's completely unprecedented. nothing like this has ever happened. we never passed the point where treasury didn't have enough money to pay the bills. i assume that the excellent career staff is making con contingency plans, will for some time and pay what they can pay out of cash. i hope we are not going to reach that point. it's kind of something we've never done before. it's something you can't get back once you lose it.

i still have a lot of hope that we won't get there. >> august 3rd, there's got to be a big payment that goes out to social security recipients. and that's going to be billions and billions of dollars that has to be paid out. paying out more that week than we bring in. michele bachmann, the presidential candidate, she made this point about social security. she said there are sufficient funds in the social security trust fund right now to make sure that they get checks. and she had said that it's irresponsible for democrats to dangle out maybe seniors won't be able to get their check so they'll have to get an iou, that that's just fear mongering. is that true? >> it's true that there are more than $2 trillion of securities in the social security trust fund. unfortunately, we can't get at them, legally when we're at the debt limit and out of cash. they stated that their legal opinion is that it's a questionable legality to try to

get at those. it's a highly maneuver that never been done. in order to pay prompt and full payment of social security benefits is through a debt ceiling limb extension. >> do they get it, how politics

has hijacked this and that the rest of the world is watching to see how our political crisis could affect our credit worthiness? >> i have spent a lot of time with members of both parties and leadership in both parties. yeah, they do get it. the issue is that they're trying to do something really, really hard here. and, you know, we're not looking very functional right now from a political standpoint. but it's not because people up there on the hill don't understand how important it is that we avoid any kind of toilette. not just a bond default, which is so unlikely, but defaulting on our benefits payments to seniors, the disabled or the elderly. it's not something we should do as a country. i to believe the leadership is committed avoiding that. >> former undersecretary to president george h.w. bush, someone who understands how the system works, how we pay the bills and borrow the money to do it. thank you very much. the bottom line is that for every dollar the government spends, we borrow 50 cents of it. who is to blame for the debt gridlock? e-mail us, give us a tweet, tell us on facebook. we'll share some of them layer in the show. suspect in the twin attacks in norway in an oslo courtroom right now. this is a live picture outside the courthouse. the judge ordered the hearing closed to cameras. anders breivik admitted to setting off a bomb, killing seven people. then police say he traveled 20

miles to an island youth camp, killing 86 more. former imf chief dominique strauss-kahn, the maid who claims he sexually assaulted her, is speaking out. in an interview with "newsweek" magazine and abc news says, quote, i want justice. i want him to go to jail. here is some of the abc interview where she recalls the moment she encountered him. >> i'm so sorry. i turn my head. he come to me, grabbed my breast. no, you don't have to be sorry. i said stop. i don't want to lose my job. he kept pushing me, pushing me to the hallway, back to the hallway, keep pushing me. i was so afraid. i was so scared. >> she says she didn't want to go public with her story but felt at this point she had no other choice. >> democratic congressman david wu at the center of an ethics investigation, the oregon representative is accused of making unwanted sexual advances

to a the teen anl daughter of a long-time donor. amy winehouse, many speculating that her death is connected to her well chronicled substance abuse. >> just a creative spirit. zain verjee is live in london with the latest. good morning, zain. you know amy winehouse, followed her career very well. there is a great deal of speculation about what killed her. >> there is. the bottom line is, no one knows for sure just yet. the autopsy is going to be happening today, according to police. the toxicology results aren't going to come out for a while just yet. just outside her home, there are friends and family and fans that are still gathered outside in total shock and disbelief that this actually did happen. she had been warned over the years that the abuse of drugs and behavior that careened out of control here would end up

this way. her parents actually, guys, were there a couple of hours ago and spoke to the fans. her dad and her mom with there. her dad said thank you to all the fans who were gathered there. he also said amy was always about love. police are saying, though, right now that her death is unexplained. there is going to be an investigation. the the family is also saying that they don't know exactly when the funeral will be held because of all of this. as you can see from those pictures, people coming to put down flowers, cards and pictures of amy winehouse. there were even cases of wine, cigarettes and a bottle of vodka there put down for her, too. >> irony. for folks who don't know, zain, she was even public about her issues. and so were so many of her friends and supporters. certainly in recent weeks they said they really think this is moving toward the end for her. they were really worried that -- >> she was coming undone. >> yes. >> right. >> she had a concert in serbia, i think, where she was booed off the face. even her die-hard, devoted fans

said we want our money back. >> people were so worried about her. they warned her of exactly that over the past few weeks. her parents tried to intervene. she had gone to the priory to go to rehab. basically she refused, adamantly. even her own parents say that amy did whatever amy wanted. this was a situation that nobody felt they could control ultimately what happened. interestingly enough, people are talking about an album that she's been working on for five years and that it was about to come out as well. they are likely going to release that. you can bet it will be a big smash. even back to black has shot up in the charts again. >> that's right. and anybody who listens to her, people who didn't know her or do know her, she's a fantastic singer and songwriter. for heem who don't, you think that's incredible. >> is that the same person? i know. >> incredible. >> a very bright star that burned brightly and burned out

too quickly. the sudden and tragic death of amy wine house, dr. drew will look at that. he does a lot of work on substance abuse, addiction and how it ravages a family and a person. >> it's unusual. a lot of people face this and they try and the rehab doesn't work. amy winehouse sang about not going to rehab. >> it's part of her persona. >> strong personality. a new study says nearly 60% of junior high school and high school students in texas get suspended or expelled. does school discipline go overboard or is there really a problem with students in texas? steve perry tackles this one next.

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steve perry. steve, let's take a look at this. on average, 60% of students, you can tell me about this study from the seventh to the eleventh grade, i guess it was, over the course of three years or longer experienced either suspension or expulsion. those are not in line with national numbers. >> no. and what's important, though, is that when schools suspend at such a high rate, it's a clear example that adults don't have control of the bidding. they tend to lean on the justice system, whether it's police officers or security officers in the school to take care of what should be going on in the classroom. suspensions are a necessary part of what we do. don't think for a second that anyone so sympathetic to a child being suspended will be so sympathetic when their child is on the other end of the

behavior. >> male students, we broke it down by race. of the male students suspended, 83% of african-american students were suspended, 74% of hispanics, 59% of whites. the numbers are lower in every category for female students. let's talk about race. is it a factor? is it -- does it reflect the breakdown? >> absolutely. >> in those schools? >> absolutely. not just in those schools, but across the country. african-american, latino boys are likely to be suspended. it's not just white people who are teachers and principals who suspend. i'm a black principal who suspends boys when they do something dumb. we're too quick to criminalize the behavior of boys as opposed to the behavior of girls, especially when those boys are boys of color. that's one side. the other side of it, ali, is that in the

african-american/latino community, we are too quick to tell children -- to push behaviors we believe are protective. if somebody hits you, hit them back. we say things like if somebody says something to you, say something back. on the other side, we look at the suburban community, we find very often is that parents are telling children that you have a right to an opinion. all of these children need to submit to authority. and that's what this is about. they need to learn that -- >> do suburban parents of white kids trust the system better to say if somebody hits you, i'll go to the principal as opposed to parents of black and hispanic kids? >> i don't know what they feel. i know what i see. they, very often, we find a difference in the way that parents are informing their children, informing their children to respond to authority. now the difference also is that middle class families are more likely to come in and advocate for their child. their child is least likely to be suspended but poor families -- >> let me ask you this.

if you see these rates of suspension, does that means kids are causing a lot of problem or does that mean that the school is over-suspending kids? >> they're over-suspending. kids are doing the same thing across the country. there's no community in which children have created new bad behavior. this is a direct result of poorly run schools. when a school is poorly run, children don't feel safe and they do things to make themselves seem tougher. they have less respect for authority. when you create a loving, nurturing and very strict environment, children understand there are limits to their bad bafr. if they do something, one, someone is going to be disappointed in them. that's one reason why punishing

children in and of itself is not a solution. >> if we don't fix the discipline problems in schools, what percentage of these kids -- what's the difference between kids who have discipline problems in schools and become to have discipline problems with

the law and end up in the justice system? >> i don't know, ali, if it's a causal relationship. i don't know that because a child was suspended they're more likely to become involved in the criminal justice system or are these behaviors that they're participating in and the school tried to deal with from suspension is exactly what they kept doing. they spit on a kid in the first grade, bit a kid in the sixth grade and punched a kid when they were 25 years old. >> right. >> i don't know if those are causal to suspension. i do know that we, as educators, need to do a better job of keeping control of our buildings. they're children, man. i don't care how big they are. they actually do want to listen to adults when adults have something that they're interested in them. >> what advice do you give your kid if they're pushed around, bullied, see a fight or wander into a fight? >> truthfully, they actually have to depend on the system and the system has to be dependable. parents, we need you -- we need you to understand when you tell your child to do something that's going to get them suspended, it's going to get them suspended. you have to think about that. if you don't want your child thrown out of a building, you have to give them behavioral cues that will keep them in the building. >> you have to tell them you'll stick up for them. >> no doubt. >> talk to teachers and principals and guys like you, saying my kid has a problem. the school has to hfipgf. >> steve perry is our education contributor. headlines are next. alone there was a 93% increase in cyber attacks.lone in financial transactions... on devices... in social interactions... and applications in the cloud.

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breaking news right now. the check-in and ticketing area at american airline jfk terminal in new york is locked down right now. officials are investigating a suspicious panel. port authority says the bomb squad is on the scene, investigating an unattended bag at the entrance to the terminal. we are still following this. we'll give you more as we report on it. again, it shut down that area of jfk, the american airlines part of the terminal. the suspect in two deadly terror attacks in norway is

wrapping up his first court appearance in oslo. norwegian tv reports anders breivik has been ordered to remain in custody for eight months until the next court appearance. the 32-year-old terror suspect left behind a 1,500 page manifesto where he copied passages from unabomber ted kaczinsky's manifesto. the new york maid who claim that is dominique strauss-kahn sexually assaulted her is speaking out for the first time. 32-year-old diallo seen here in an abc interview, says i want justice. i want him to go to jail. congressman from oregon faces an ethics investigation. david wu is accused of making unwanted sexual advances toward the teenage daughter of a long-time campaign donor. wu is resisting calls to resign.

today, president obama canceling two fund-raising appearan appearances to work on a debt ceiling compromise. right now, markets across the globe reacting to those stalled debt talks that close d down in asia, mostly down in europe. here in the u.s., markets are poised to open sharply lower, nasdaq, s&p 500 futures are trading lower ahead of the opening bell as well. fires set in north hollywood that began in cars but quickly spread to nearby buildings. police say no one has been hurt. the 27-year-old singer was found dead in her london apartment saturday. you're caught up on the day's headlines.

♪ looking at the george washington bridge in new york if you were going to newark airport. if you're headed to jfk, that's going to be a problem. new york, 79 degrees right now, going up to 80 degrees with thunderstorms later on today. we have breaking news at jfk. >> that's right. the check-in and ticketing area at the american airlines jfk terminal in new york is locked down right now. that's check-in and ticketing area. officials are checking out a suspicious package. the port authority says the bomb squad is on the scene, investigating an unattended bag at the entrance to the terminal. they deal with this all the time. when they go as far as locking something down, we like to let you know in case you're going in and out of there. wedding bells have been ringing nonstop since same-sex couples were legally allowed to marry in new york state over the weekend. the law took effect yesterday.

more than 700 couples won slots in the lottery to get marriage licenses for ceremonies yesterday. >> by the laws of the state of new york, i now pronounce you married. you may seal your vows with a kiss. >> the first same-sex couple to marry in new york city, not in the state, tied the knot at city clerk's office as a crowd of onlookers cheered. >> it was just so amazing. it's the only way i can describe it. i lost my breath and a few tears. and it's inscribable. >> protesters gathered across the state, claiming governor cuomo redefined marriage without giving voters any input. the american family segment this morning, a more important decision than paper or plastic. cart or basket, ali velshi? a study in "time" magazine shows people who choose a basket at

the grocery store make more unhealthy decisions than people who choose cart. it all has to do with the mind/body relationship and the motion, apparently, of flexing your arm to hold the basket leaves you to choose vices as a reward like candy or soda. >> entirely counter intuitive to me. >> i would think that the big cart, you could put more -- >> more candy. the licorice, sodas not as prominent as it is in a basket. i didn't do the study. my mind/body relationship is excellent. how long can you go without checking your smart phone? mine, by the way, is right here. i can't do anything without checking it. >> it's part of your mind/body continuum. >> people who tried to

disconnect from their digital world found it as difficult as quitting drinking or smoking. 40% felt, quote, lonely, when they were not able to go online. i'm not sure i feel lonely. i feel a little disconnected, a little panicky. >> i'm always wondering when we go to dinner if i'm make a reservation for two or three. >> good point. 55 minutes after the hour. [ man ] there's never any seats for 25,000 miles. frustrating, isn't it? but that won't happen with the capital one venture card. you can book any airline anytime. hey, i just said that. after all, isn't traveling hard enough? ow. [ male announcer ] to get the flights you want, sign up for a venture card at capitalone.com. what's in your wallet? uh, it's okay. i've played a pilot before.

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washington, d.c., feels like 96, we're told. thunderstorm, 92 later. >> thunderstorms pretty much everywhere across the east coast later on because of part of the heat. baa ba back to our question of the day. we want to know what you think, who is to blame for the debt gridlock? some of your responses. michael says on our blog. who is responsible? i am. you are. it doesn't matter whether you're a democrat or republican. the preamble of the constitution begins, we the people. so, to answer your question directly, we, the people, are responsible. >> clyde says both parties are to blame. they should broadcast the meeting on tv. then we would see where the real holdup is. >> what an excellent idea. craig says i have to throw my vote in for both. you have on